A STEEL manufacturer’s reshuffle has come at a cost as 76 jobs are set to go in a dark day for the borough.

The axe has fallen on the Tafarnaubach rolling mill near Tredegar as Tata Steel looked to shore up its long-term future – one of several moves by the company that will cost 580 jobs across Wales.

The company is concentrating its services at six UK distribution and processing hubs, which will benefit from £22m of new investment, but will result in the closure of 12 sites.

The move has drawn widespread condemnation, with Unite Wales secretary Andy Richards branding it a “dark day for Welsh workers, and for the steel industry in Wales”.

The statutory 90-day consultancy period has now begun with company bosses, staff and the unions.

Dr Karl Köhler, CEO of Tata Steel’s European operations, said the move was needed to enable the company to succeed in the challenging economic climate.

“Today’s proposals are part of a strategy to transform ourselves into an ‘all-weather’ steel producer, capable of succeeding in difficult economic conditions,” he said.

“These restructuring proposals will help make our business more successful and sustainable, but the job losses are regrettable and I know this will be a difficult and unsettling time for the employees and their families affected.

“We will be working with our trade unions and government at a national and local level to ensure we provide them with as much assistance and support as possible.

“In addition, our subsidiary UK Steel Enterprise will be looking at how it can provide more support to local steel communities and stimulate new jobs following this announcement.

“We will strengthen this work with a further £650,000 to help them create new jobs in affected areas. UK Steel Enterprise has teams in all the affected locations who, for almost four decades, have helped to regenerate local economies and create 70,000 new jobs in the UK.

“We will do everything we can to reduce the impact of the proposals on employees and, where possible, we will look to achieve job losses through voluntary redundancies.”

Nick Smith, MP for Blaenau Gwent, condemned the move as he hopes a buyer can still swoop in to save the day.

“This is very bad news for Tata’s long-standing and loyal employees in Blaenau Gwent, which will have a knock-on effect on our local economy,” he said.

“I’m in contact with the company and plan to meet senior managers next week to see if there is any chance a buyer could be found.

“The backdrop to this decision is a fall in UK steel demand over the last four years steeper than in any other major EU economy – that’s why the government needs to invest in jobs and growth to help revive manufacturing.”

Leader of Blaenau Gwent Council Hedley McCarthy said: “This is obviously disappointing news for our communities. But we are committed to working with the Welsh Government and partners to support every person involved. We will provide those affected with as much guidance and support as possible.”

He also added that the council is working hard to generate jobs in the area, citing the Works developments and the Rassau racetrack as examples.

“The announcement of an Enterprise Zone focusing on automotive and hi-tech firms will provide a significant boost to these sectors.

“The precise mix of incentives is currently being decided with the Welsh Government, but is likely to include five-year business rate relief and enhanced capital allowances.

“There is also a limited amount of grant aid for development of small companies and social enterprises.”